A green entrepreneur steps down: Take good care of my baby
Image by Getty Images for Sunshine Sachs via Daylife
The recent announcement that Jeffrey Hollender is leaving the helm of Seventh Generation made me think about that crucial stage in small company evolution–when the business has outgrown the founder’s skills or interests.
Hollender built his Burlington, Vt., business into a hugely successful sustainable consumer products company and a model for other triple-bottom-line ventures. But, the plan is now to turn up the volume considerably and grow the business to $1 billion over the next few years, from $150 million today. And, Hollender figured he wasn’t the person for the job, as he wrote in his blog:
As I made this journey, I began to find these new possibilities emerging each day, and I felt free to move in different directions and entertain new ideas. Chief among them was the realization that as much as I was the right person to guide our company through infancy and into adolescence, I was not the ideal candidate to take it all the way. While I knew I still had many meaningful contributions to make to Seventh Generation, it became clear to me that what I could not do was supply the managerial wisdom and experience needed to steer the company on the next stage of its voyage. Thus, we began our search for someone who could.
We sought an experienced leader with a proven track record of managing rapid growth, business systems, product development and innovation, brand building and marketing, and financial and operational efficiency as well as someone who knew how to successfully grapple with acquisitions, partnerships, and competitive strategies.
The fact is, people like Bill Gates, who ran his company from startup to Darth Vader status, are unusual. And, when you think about it, Hollender lasted a lot longer than most company founders–around 20 years.
Still, finding a replacement for the founder of a mission-driven business is a bit more complex than it is for your garden-variety ambitious venture. You need someone with grown-up, high-level corporate leadership experience who also buys into the triple-bottom-line philosophy and can thrive in a smaller, less-bureaucratic company. That’s asking a lot.
Hollender’s replacement is Chuck Maniscalco, a consumer packaged goods industry veteran, with 21 years at Quaker Oats and PepsiCo, where he was president and CEO of the Quaker, Tropicana, and Gatorade businesses. In his blog, Hollender described Maniscalco as an “accidental” executive, who entered the corporate world thanks to his interest in psychology. (He started out doing consumer market research). In his own blog , Maniscalco wrote that, when he left PepsiCo in 2008, his main goal was to find a way to “give back.” So, he sounds promising–although more than two decades at mega corporations does make me a bit apprehensive.
No matter what, I have to hand it to Hollender for knowing when it’s time to move on.
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I’ve long been disappointed by the performance of Seventh Generation products, always hoping they would work better (feel softer, blot better, etc.) I’d pay a little more to save the planet and get decent results from product usage. Maybe Hollender’s replacement will grow the business through improving what SG sells.
I like their paper towels. But if a lot of consumers feel like you, the company faces a steep climb. Particularly because in this economy consumers aren’t so willing to pay more for green products.
Have you used other green products that you like better than Seventh Generation’s stuff?